A commencement certificate, or CC, is an official document issued by the local municipal authority to commence the construction of the property. It ensures that the project is following all essential permissions and regulations. Before laying the foundation, the builder is required to obtain permissions, licenses, and sanctions for the plan and layout.
The municipal government will conduct the preliminary inspection before issuing a certificate. The CC is provided under the commencement certificate RERA Act. It authorises the building plans, land titles, and no-objection certificates.
Every homeowner needs to be aware of this certificate to confirm that the project is legally safe against all potential issues. This article provides detailed information about the commencement certificate and how to obtain it.
Overview of Commencement Certificate
A commencement certificate authorises the new building project after validating the building plans and layout. It is a significant document in the world of real estate. Generally, this authorisation is mandatory to commence the construction of the new property.
Builders need to submit the required documentation to the local municipal authority, subject to verifying all set and determined regulations. For builders, it acts as a confirmation that they have followed all essential guidelines, improving the credibility of their project.
Importance of a Commencement Certificate
A commencement certificate acts as legal proof for both homebuyers and developers. Let’s have a look at the benefits:
- Legal Requirements: This certificate signifies that the construction project has obtained all legal regulations, such as construction and land use norms and environmental and zoning laws.
- Safety Standards: It indicates that the project is planned with regard to safety standards, including fire safety, structural integrity, and earthquake resistance.
- Helps in Getting Loan: Most banks and financial lenders ask for this commencement certificate before approving home loans. It ensures the lender that the project is legally underway and there is a lower risk involved.
- Safeguard Buyer’s Rights: The certificate acts as a safeguard for buyers against potential legal complications. Without this evidence, buyers might face legal issues if any activities violate the law.
Steps to Obtain a Certificate of Commencement
Let’s delve into the steps to obtain a CC:
- Submit an Application: Builders need to submit the formal application to the respective authority with all required documents and an application fee.
- Site Inspection: After the submission of the application, a site inspection will be conducted to verify that the project plan has met all local rules and regulations.
- Prompt Reply: If authorities ask for any queries, the builders need to give them a prompt reply with the required documentation or information.
- Certificate Issuing: Once after the successful verification, if you have paid the processing fee (if applicable), the local authority will issue a commencement certificate.
- Certificate Renewal: If your certificate is mentioned with any validity period, keep track of the details and take essential actions on time.
Required Documents for Obtaining Commencement Certificate
Below are the lists of documents that a builder/developer needs to submit for a commencement certificate.
- An application form
- Approved building plans
- Land ownership documents
- NOCs (no-objection certificate)
- Environmental clearances
- Latest tax-paid receipt
- Photographs of the site
Planning and Procedures for the Issue of Commencement Certificate
The application procedure can vary between local authorities; however, the common steps involved in obtaining the commencement certificate, such as:
- The application from the developer/builder is forwarded to the local authority along with a plan drawn that indicates the schedules of the land, the size of the proposed building, and the actual dimension of the land. If they demand any supporting documents that need to be accompanied with the building plan.
- The application and documents will be verified by the authority to confirm that they adhere to local laws and regulations.
- Once the validation is done, the concerned authority may approve or grant permission to issue the commencement certificate.
- If the submitted building plan gets approved, an applicant is asked to pay the prescribed processing fee.
- Finally, the local authority will issue a commencement certification. The builder is advised to check the engraved information is appropriate to your construction project.
Consequences of Building Without a Commencement Certificate
Below are the lists of penalties you will be charged if you fail to file a commencement certificate:
Penal Provisions: If a firm or builder fails to follow the provisions of section 11(2), they may need to pay a penalty of up to five thousand rupees. Each person who is in default faces a fine of one thousand rupees each day.
Removal of Company Name from the Corporation: According to Section 11(3), if the company has not responded to the registrar within 180 days, they consider that the company is not carrying out any business operations. The registrar has the right to remove the company name from the register.
Validity of a Commencement Certificate
A commencement certificate is significant for beginning the construction process, and understanding its validity helps both buyers and builders. Here’s a detailed view:
Indefinite Validity: Commonly, a commencement certificate is provided with indefinite validity, as long as the builder or developer needs to follow the derived norms and conditions in the certificate.
Specific Time Limits: The time limit or validity period may vary for every region and local authority. It can range from a few months to years. If the validity period ends, you need to take immediate action when the construction is still in progress.
Renewals or Extensions: If you’re unable to complete the construction within the time limit of the commencement certificate, you should apply for an extension of renewal. This may need a formal application form and an additional processing fee.
In a Word
Whether you are committed to building a new project or planning to buy a home, ensure that the project has met all legal requirements. Most importantly, knowing what a commencement certificate is and how it influences the construction of a new building. I hope this article covers all the crucial aspects of the CC.